Blue Owl Capital (NYSE:OWL) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Blue Owl Capital beat quarterly estimates: EPS was $0.24 versus the $0.23 consensus, while revenue reached $752.6 million compared with expectations of $698.1 million.
• Fundraising and future fee growth remained strong: The company raised $12.6 billion during the quarter and $49 billion over the past 12 months, lifting assets under management 12% to a record $330 billion. Approximately $36 billion of AUM is not yet fee-paying and could generate about $400 million in annual management fees once deployed.
• Dividend support was reinforced, though investor flows bear watching: Distributable earnings of $0.24 per share exceeded the $0.23 quarterly dividend, which implies an annualized yield of about 8.9%. Management cited improving private-wealth inflows, but redemptions and a reduced analyst price outlook remain potential risks.

Blue Owl Capital (NYSE:OWL - Get Free Report) posted its earnings results on Thursday. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.01, FiscalAI reports. Blue Owl Capital had a return on equity of 23.14% and a net margin of 2.71%. The company had revenue of $752.60 million for the quarter, compared to analyst estimates of $698.10 million.

Here are the key takeaways from Blue Owl Capital's conference call:

• Strong earnings and dividend coverage: Third-quarter fee-related earnings rose 15% year over year and distributable earnings increased 14%, with DE of $0.24 per share exceeding the $0.23 dividend. Management expects to continue over-earning the dividend through 2027 and beyond.
• Fundraising and embedded fee growth remained robust: Blue Owl raised $12.6 billion in the quarter and $49 billion over the last 12 months, lifting AUM 12% to $330 billion. The company has $36 billion of AUM not yet paying fees, which management estimates could generate approximately $400 million in annual management fees once deployed.
• Credit performance and deployment opportunities were favorable: Direct lending and alternative credit returns outperformed relevant public benchmarks, while direct lending realized losses remained low at 12 basis points annually and portfolio health was described as stable. Higher rates and wider spreads are creating opportunities to redeploy repayments into potentially more attractive investments.
• Real assets and digital infrastructure are key growth areas: Real assets fundraising increased 37% over the last 12 months, with more than $140 billion of near-term net lease and digital infrastructure opportunities. Management emphasized long-term leases with investment-grade hyperscalers and expects continued demand for data-center and real estate credit strategies.
• Private wealth trends showed signs of recovery: Third-quarter wealth inflows rose 14% sequentially, while redemption requests for several products declined, including a nine-quarter low for ORENT. Management cited improving distribution activity, new platform launches, and stronger demand for diversified credit and real-asset products heading into 2027.

Blue Owl Capital Price Performance

Blue Owl Capital stock traded up $0.70 during trading hours on Thursday, hitting $10.37. 38,053,847 shares of the stock traded hands, compared to its average volume of 24,668,350. The firm's 50 day moving average price is $10.13 and its 200-day moving average price is $10.42. The stock has a market capitalization of $16.16 billion, a price-to-earnings ratio of 86.39, a P/E/G ratio of 1.14 and a beta of 1.35. Blue Owl Capital has a 1 year low of $7.95 and a 1 year high of $17.00.

Blue Owl Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Tuesday, November 10th will be paid a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 8.9%. The ex-dividend date is Tuesday, November 10th. Blue Owl Capital's payout ratio is presently 766.67%.

Analyst Ratings Changes

A number of research firms recently commented on OWL. HSBC set a $17.00 target price on shares of Blue Owl Capital in a research report on Thursday, September 24th. TD Cowen raised their price objective on Blue Owl Capital from $15.00 to $16.00 and gave the stock a "buy" rating in a research report on Monday, October 12th. The Goldman Sachs Group upped their target price on Blue Owl Capital from $9.50 to $10.50 and gave the company a "neutral" rating in a research report on Monday, August 3rd. Piper Sandler dropped their price target on Blue Owl Capital from $13.00 to $12.00 and set an "overweight" rating on the stock in a research note on Monday, October 19th. Finally, Citizens Jmp decreased their price objective on shares of Blue Owl Capital from $21.00 to $17.00 and set a "market outperform" rating for the company in a research report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $13.27.

Trending Headlines about Blue Owl Capital

Here are the key news stories impacting Blue Owl Capital this week:

• Positive Sentiment: Quarterly earnings and revenue beat estimates. Blue Owl reported third-quarter EPS of $0.24, ahead of the $0.23 consensus estimate, while revenue of $752.6 million exceeded expectations of $698.1 million. EPS also increased from $0.22 a year earlier. Blue Owl Capital Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Assets under management reached a record $330 billion. Blue Owl said it raised nearly $50 billion during the past 12 months, supporting expectations for future management-fee growth across its Credit, Real Assets and GP Strategic Capital platforms. Blue Owl Third-Quarter Profit Beats Estimates
• Positive Sentiment: Fee-related earnings and distributable earnings strengthened. The results indicated that growth was driven by recurring fee income, a favorable development for the company’s cash-generation capacity and dividend support. Blue Owl Capital Third-Quarter Growth Driven by Fee-Related Earnings
• Positive Sentiment: Blue Owl declared a quarterly dividend of $0.23 per share. The payment is scheduled for November 23 for shareholders of record on November 10, representing an annualized $0.92 dividend and an indicated yield of approximately 8.9%. Blue Owl Capital Third Quarter 2026 Results
• Neutral Sentiment: Fundraising momentum was strong, but investor flows warrant monitoring. Reports noted that redemptions weighed on some inflows, creating a potential near-term risk despite the record AUM. Blue Owl Fees Beat Estimates Though Redemptions Weigh on Inflows
• Negative Sentiment: An analyst at BMO Capital Markets lowered expectations for Blue Owl’s stock price, which could limit upside or temper enthusiasm following the earnings beat. BMO Capital Markets Lowers Expectations for Blue Owl Capital

About Blue Owl Capital

Blue Owl Capital Inc NYSE: OWL is an alternative asset manager that provides private-market investment solutions to institutional investors, financial professionals, and other clients. The company focuses on strategies designed to deliver income, long-term capital appreciation, and customized exposure to private markets.

Blue Owl operates across three primary platforms: Credit, GP Strategic Capital, and Real Estate. Its credit business provides private financing to companies, including direct lending and other asset-backed and specialty finance strategies.

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